Whether you are a new or old entrepreneur, any project you embark on will cost you more and probably take a longer time to accomplish. That is why getting investors for your business is not a bad idea. Nonetheless, getting the right investors requires a large sum of your own personal money, but if you use your time, energy and money in your quest wisely, you will have a higher chance of reaching your goals. This article is going to show you some plausible ways to attract the right investors for your business.
Before we dive into a proper definition, do note that nobody including investors wants to read a pipe dream as a business plan. Every investor wants to invest in companies who have proof of customers’ discovery and traction. Before your investors have, you will create a budget to get your customers, get to certain level of success you can easily share with your prospective investors; only before all these, you will be able to draw the attention of investors to your company.
Furthermore, you need to know that getting investors for your business does not come cheap; some investors may not live in the same city as you, you need to know the cost concerning expenses, travel, or any other additional fees you will spend during this period. Do thorough research on your revenue and expenses for the year, see if it will be wise to spend that much on your marketing.
Many young entrepreneurs tend to make the mistake of “overselling” their business ideas to investors. It can bounce back at you in a negative way; it is not wrong to have in your business, but your investors deserve to know what they are getting into. There is a fine line between certainty and possibility. Let them know the Pros and cons of investing in your business; it is better you tell them yourself than they find out themselves from someone else.
Identify potential investors
As a business owner or entrepreneur, you need to understand that not every investor is the right investor for your business. Conduct thorough research on your potential investors to save you time and energy. According to Roshawnna Novellus who is the Co-founder of Bootstrap Capital, host of Startup Funding, and serves on the Commission on Women for Atlanta, you need to ask some questions about your potential investors. “What are your potential investors like as individuals? Have they invested in businesses like yours in the past? Do the tenets of your business mesh with theirs?” she wrote.
Furthermore, you need to She stated that you need to know them on a personal level, it will help a great deal if you also interact with them on a spiritual level too. Finding out the interests and beliefs of your investors is necessary. Also, you score a point if their views on such issues match with yours; it will rapidly increase the chances of getting them onboard.
Use the power of social media
The influence of social media on our businesses cannot be overstated; give your business a strong, positive social media presence. It will attract investors to your business; it gives you the platform to showcase your business to the world, as well as connect with your investors. With the help of LinkedIn, Facebook, Twitter and Instagram you can allow your potential investors have a feel of your business, and what it stands for. When you pitch your business plan to them, it will be easy for them to understand and to relate to you. Moreover, social media gives you the platform to know your investors, know what to say or not to mention when pitching your ideas. It also gives you a head start- an opportunity to show them how their values intertwine with yours.
Water seeks its own level
Many people often inspire us; some say “dream big” be bold! You can do it! all of these are good, but what we fail to understand is “it is okay to start small.” Of course you need boldness to thrive in any business; however, you need to pitch at your level. If you are new or still young in the industry, start small in your quest for investors. It will increase your chances of success; meet small investors who are interested and have a history of supporting your type of business. As your business grows, and you need millions to finance your ideas, then you can move to more prominent investors.
Practice makes perfect
A wise man once said, “the largest room in the universe is the room for improvement.” Practicing your pitch saves you from a lot of hiccups. Endeavor to practice as much as you can to give you the confidence you need to spike the interest of your potential investors. It helps if you practice your pitch in front of your friends, family, advisers and even strangers. Get feedback from them, note their concerns, and use their criticisms to create a better pitch.
Don’t give up
There is no guarantee that you will get your investors from the first pitch, the difference between a successful entrepreneur and the others is dedication, resilient, and hard work. You have to stick to your guns. What is the point of starting a business if you are going to quit all because you got a few NOs from investors? Nothing is stopping you from trying again if your pitch does not yield positive results. Learn from the mistakes; what didn’t they like about the idea? What do they want? Take note and go back to the drawing board. Every successful company you see today started small.
Furthermore, going back to the drawing board does not mean you have to put your business on hold. Most investors prefer to invest in companies that are running, no matter the how small is the business.
You have to stay positive, believe in yourself, and your business; it will pay off. Your mindset towards your business and life, in general, has a way of influencing what happens to you. Try as much as you can to steer clear from negative people. Know the difference between criticism and people who have problems with every solution.